How Much Contribution

SMSF Technical Education & Strategies

How much of each type of SMSF contribution is allowed?

The following table summarises how much of each contribution is allowable, and what happens if you exceed these levels:

Contribution Type	Maximum amount allowed	What happens if you exceed the maximum
Concessional*	$25,000 p.a. If your already aged 50 or more or turn 50 between now and 30 June 2012, you can make concessional contributions of up to $50,000 pa during each remaining financial year up until 30 June 2012.	The excess amount is taxed at 31.5%, in addition to the 15% tax normally paid by the super fund for the contribution. The excess is also treated as a non-concessional contribution and goes towards your limit for that contribution type (see below).
Non Concessional**	$150,000 p.a. If your under age 65, you can elect to bring forward two years so that it is counted as $450,000 over the 3 year period.	The excess amount is taxed at 46.5%
Government co-contribution	$1,000 p.a A maximum of $1,000 can be received (i.e. $1 for each non-concessional dollar contributed) for the 2009/10, 2010/11, and 2011/12 years, subject to the income limits.	n/a
CGT cap amount^	$1,155,000 lifetime limit. Note that one of the items that make up this limit is the CGT rollover retirement exemption which itself has a lifetime limit of $500,000 (not indexed).	Once the lifetime limit is breached, the excess amount will not be exempt, and will be counted towards the non-concessional limit.

* the concessional threshold is indexed to average weekly ordinary time earnings (AWOTE), however it is rounded down to the nearest $5,000.

** the non-concessional contribution threshold is set at six times the concessional threshold

^ the CGT cap amount is also indexed in line with AWOTE, in increments of $5,000 (rounded down).

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